March 26 Financial Morning Brief: The market assesses signs of easing in Middle Eastern tensions, gold price approaches the 4500 level, oil prices await further statements from Iran

Reuters Finance APP News — On Thursday (March 26, Beijing time), Asian markets opened with spot gold trading near $4,500 per ounce. Despite ongoing uncertainties surrounding Middle East conflicts, the narrowing of oil price gains has alleviated inflation concerns and dampened rate hike expectations; U.S. crude oil trades around $90.93 per barrel, even though Iran’s foreign minister stated there is no intention to hold negotiations to end the conflict, markets are assessing signs of easing tensions in the Middle East.

Focus for the Day

Stock Markets

U.S. stocks closed higher on Wednesday, mainly supported by falling oil prices and investor hopes for a potential easing of Middle East tensions. The Dow Jones Industrial Average rose 0.66%, the S&P 500 gained 0.54%, and the Nasdaq increased 0.77%.

Although there are still disagreements between Iran and the U.S. regarding a ceasefire plan, any signs of communication have boosted market sentiment. The energy sector performed the weakest, while materials and non-essential consumer goods led gains. In individual stocks, Arm surged 16.4% on expectations of new AI chips; aerospace stocks rose broadly on the possibility of SpaceX filing for an IPO; airline and cruise stocks benefited from falling oil prices. Market activity was lively, but volatility is expected to remain high.

Gold Market

Gold prices rose on Wednesday, with spot gold briefly surpassing $4,600 per ounce, mainly supported by falling oil prices easing inflation fears and dampening rate hike expectations, despite persistent uncertainties in the Middle East.

Analysts noted that gold showed a technical rebound, and optimism that hostile actions related to Iran might weaken also provided support. If inflation concerns further ease, gold could rise back to $5,000. However, news that the Pentagon plans to deploy additional paratroopers to the Gulf adds uncertainty. Spot silver, platinum, and palladium showed mixed movements.

Oil Market

Oil prices closed up over 3% on Wednesday, with U.S. crude returning above $90 per barrel. Markets are assessing signs of easing tensions in the Middle East, with investors watching Iran’s review of the U.S. proposal to end the Gulf conflict, though Iran’s foreign minister stated there is no intention to hold negotiations to end the conflict.

A senior Iranian security official said Iran would end the war based on its own timeline and conditions, and would not allow U.S. President Trump to decide when the war ends.

Forex Market

The U.S. dollar strengthened against major currencies on Wednesday, with the dollar index rising 0.44% to 99.62, amid market skepticism about U.S.-Iran diplomatic easing. Traders are weighing global inflation trends and remaining cautious. Despite Iran reviewing the U.S. proposal to end the Gulf conflict, Iran’s response remains negative, denying direct negotiations, which unsettles investors.

U.S. import prices in February saw their largest increase in nearly four years, further confirming mounting inflation pressures. Federal funds futures indicate market expectations for a December rate hike have increased, reversing last week’s expectations of a rate cut.

Major currencies: the euro fell 0.39% to $1.1562, the pound declined 0.37% to $1.3362, the yen rose 0.49% to ¥159.46, and the Australian dollar dropped 0.63% to $0.6949.

International News

U.S. and Israel temporarily remove Iranian Parliament Speaker and Foreign Minister from sanctions list

The U.S. and Israel have temporarily removed two senior Iranian officials, Foreign Minister Araghchi and Parliament Speaker Ghalibaf, from the sanctions list for four to five days. Washington is exploring possible ceasefire negotiations. Sources say Trump is open to ending the war through negotiations.

U.S. airport security wait times hit record highs amid funding shortages causing TSA staffing shortages

The Transportation Security Administration (TSA) warned that a weeks-long funding shutdown has led to staff shortages, long passenger queues, and increased chaos at airports nationwide. “This has resulted in the longest wait times in TSA history, with some queues exceeding 4.5 hours,” Acting Director Ha Nguyen McNeill told lawmakers on Wednesday. She added that over 480 security officers have been lost during the funding lapse.

Iranian Foreign Minister: No negotiations with the U.S. at present

Iran’s Foreign Minister Araghchi said that talking about negotiations now is itself a sign of failure; didn’t they previously claim unconditional surrender? Why are they now mobilizing senior officials for talks? He added that currently, there are no negotiations with the U.S.; the U.S. is only passing messages through different mediators,